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David Howarth: If I may sum up the situation, I raised two issues—scope and enforcement. The issue of scope breaks down into two separate matters. One is whether assessment notices should apply to purely private organisations such as Tesco, and the other is whether they should apply to private organisations that are carrying out public functions. As I understand it, the Government’s position is that they are not willing to move on the former but are considering moving on the latter. At the moment, there appears to be a power to include private organisations carrying out public authority functions, but no obligation to do so, and the Government are thinking about the situation.
The situation is therefore more encouraging than it might be, but it is not fully there yet. Purely private organisations have immense power. We should treat them as organisations with that much power when thinking about how they ought to be regulated. The Government’s argument about the market sorting it out is precisely the sort of argument that we ought to be sceptical about, given the economic situation that we are in.
Even as a matter of economic theory, markets cannot work where people do not have the information to make choices. It seems to me that the Government have gone too far into a naive view of regulation and the market. In fact, in some cases—this is an example—regulation makes the market work better, because it produces more information for consumers, rather than closing the market down.
On the second issue, the Government’s position seems to be that the Information Commissioner has enough powers already and that, as they want to stick to a public sector view of assessment notices, there is no need for extra enforcement powers. I find that disappointing, but I ask the Government to consider the obvious point that if they extend the assessment notice process to private sector organisations carrying out a public function, their argument about enforcement no longer applies, because they will no longer be dealing purely with governmental organisations that they would expect to comply automatically. At that point, they should consider again the question of enforcement.
Mr. George Howarth: Is the hon. Gentleman not in danger of confusing data protection with the regulation of business? At times, they may be similar but, actually, they are distinct things.
David Howarth: I do not think so. I am trying to ensure that there is proper regulation of data protection, which sometimes involves the regulation of some businesses, because businesses hold data. That goes back to the point made by my hon. Friend the Member for Cardiff, Central: we are talking about the enforcement of existing obligations—they already apply—on the private sector, not about changing obligations.
Will the Government reconsider their position on enforcement as a consequence of reconsidering their position on scope? The two things are connected. I do not wish to detain the Committee further. I am sufficiently encouraged by the Government’s movement on private sector bodies carrying out public functions that I beg to ask leave to withdraw the amendment.
Mr. Bellingham: I always listen carefully to the Minister. Obviously, there is a developing agreement between us on how the private sector should be controlled when it comes to assessment notices. She made a good point about section 41 of the Data Protection Act 1998.
Alun Michael: On a point of order, Mr. Cook. I may have lost track, but I thought that the hon. Member for Cambridge had withdrawn his amendment. Did that not close the debate?
The Chairman: Let me clarify the situation for the Committee. I am yet to put the withdrawal to the Committee. At the moment, I am allowing the hon. Member for North-West Norfolk to make his points, which I hope he will do briefly.
Mr. Bellingham: I will be brief, Mr. Cook, because the Minister has given us some encouragement. I hope that she will reply to me on the powers that will be included. Obviously, private sector organisations that are in contracts with various Departments and agencies are not necessarily included, but the powers to include them exist. I would be grateful if in due course we could have a discussion about that, perhaps in writing.
I take on board what the Minister said about new clause 32, but I urge her to push on with as much speed as possible to introduce the changes made by the other place to the Criminal Justice and Immigration Act 2008.
David Howarth: I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Mr. Bellingham: I beg to move amendment 372, in clause 151, page 99, line 30, leave out ‘without the approval of the Secretary of State’ and insert
‘until the code has been approved by a resolution of each House of Parliament’.
The Chairman: With this it will be convenient to discuss the following: amendment 367, in clause 153, page 107, leave out lines 37 and 38 and insert—
‘(4) The code must not be issued by the Commissioner until a statutory instrument containing the draft code has been approved by a resolution of each House of Parliament.’.
Amendment 368, in clause 153, page 107, line 40, after ‘must’, insert ‘not’.
Amendment 369, in clause 153, page 107, line 44, after ‘is’, insert ‘not’.
Amendment 370, in clause 153, page 108, leave out lines 8 to 14.
Amendment 371, in clause 153, page 108, line 17, after ‘under’, insert ‘annual’.
Mr. Bellingham: The amendments ensure that a resolution of both Houses of Parliament is in place before the Information Commissioner issues the code of practice on enforcement notices. Clause 151 states that it is up to the Secretary of State to approve the code of practice, but why should there not be an affirmative resolution of both Houses? Why is Parliament being downgraded? Surely the affirmative resolution procedure should be in place.
We are talking about the code of practice on assessment notices, the importance of which we have already discussed. The code of practice is an important tool in the commissioner’s armoury in ensuring that we have better data protection in this country. Before the commissioner issues the code of practice, it should be subject to affirmative resolution. Why can that not happen? We are increasingly using the affirmative resolution procedure, which is good for Parliament, so I humbly suggest to the Minister that the amendments are positive. Why should the Secretary of State have the power, and why should Parliament not have more power?
We are discussing a very important part of what will be the interface between our constituents, their private data and lives and Her Majesty’s Government—a Government who are taking upon themselves more powers, and want to interfere more in, and look at more aspects of, our lives and to have more control over our data. Surely, Parliament, not the Secretary of State, should be the ultimate sanction.
Bridget Prentice: Much as I would like to be positive towards the hon. Gentleman on this matter, given the relative narrow scope of the code, I am not persuaded that it needs to be subject to the parliamentary procedure that he has outlined. Obviously, the other amendments would also make the data-sharing code of practice subject to the affirmative procedure.
The Bill states that a draft data-sharing code must be laid before Parliament within 40 days, unless either House resolves not to approve the draft. Of course, we recognise that the code is important, given the need to provide clear, authoritative guidance to practitioners, which is why we have provided for the equivalent of the negative resolution procedure. That is probably the appropriate level of parliamentary scrutiny for what is, after all, a code of practice, rather than a statutory order, regulations or rules. If we have misjudged the level of scrutiny for the two codes of practice, I shall look with interest and pay close attention to what the Delegated Powers and Regulatory Reform Committee says when it considers the matter. We will, of course, consider its recommendations very carefully.
Amendment 371 would oblige the information commissioner to keep the code of practice under “annual” review. Proposed new section 52C to the Data Protection Act, inserted by clause 153, obliges the commissioner to keep the code under review, and he is also required to update the code if he becomes aware that its content could result in the UK breaching any of its Community or international obligations. It is possible to read amendment 371 as preventing the code from being amended quickly, once a breach has been identified, whereas proposed new section 52C gives the information commissioner the scope to reconsider and review the code as and when he sees fit. Given his role as the independent data protection regulator, we think that that is right and that tying them to an annual review would be unnecessarily restrictive.
Mr. Kidney: I am sorry to slow my hon. Friend’s progress through amendment 371, but I want to return to amendment 372. She has answered the point about parliamentary approval of the code, but the other part of the amendment raised the question why the Secretary of State should have to give permission for the code to be issued in the first place. The Information Commissioner warned us that that is a dangerous imposition and fetter on his independence from Government. What is the justification for the Secretary of State approving the issue of the code in the first place?
Bridget Prentice: My hon. Friend makes a fair point. The reason is that it gives the opportunity to ensure consistency across Whitehall Departments in relation to data protection matters. It also ensures that the burden on public bodies is both proportionate and fair. That is why it is in the hands of the Secretary of State.
Mr. Garnier: That is not an answer to the hon. Gentleman’s question. Consistency can be policed or applied by the commissioner, who has a wider remit than the Secretary of State across Whitehall. The Secretary of State will be concerned primarily with his own Department. If he starts interfering with other people’s Departments, I dare say that jealous Ministers will complain. Surely the hon. Gentleman’s point needs to be considered rather more carefully than the Minister’s argument demonstrated.
10.15 am
Bridget Prentice: I am terribly sorry if the hon. and learned Gentleman thinks that I did not consider my hon. Friend’s question seriously enough. It is the answer to the question, but whether it is the answer that either the hon. and learned Member for Harborough or my hon. Friend wanted to hear is another matter. However, if it is something about which members of the Committee feel strongly, I am happy to reflect on it and see whether the responsibility should be handed over to the Information Commissioner rather than the Secretary of State. It is not something on which I intend to go to the wall about, but I will certainly have another look. The Delegated Powers and Regulatory Reform Committee in the other place still has to scrutinise that part of the Bill, and I shall pay close attention to what it says on the subject.
Mr. Garnier: May I say how grateful I am to the Minister?
Bridget Prentice: I am deeply delighted that the hon. and learned Gentleman is grateful to me, at least until the end of today.
Mr. Bellingham: On a dull Thursday morning, I regard the Minister’s commitment to look at the matter and to talk to the Delegated Powers and Regulatory Reform Committee as a minor triumph. I shall quit while I am ahead. I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Clause 151 ordered to stand part of the Bill.

Clause 152

Information sharing
David Howarth: I beg to move amendment 49, in clause 152, page 100, line 7, leave out ‘any person’ and insert ‘an appropriate person’.
The Chairman: With this it will be convenient to discuss the following: amendment 50, in clause 152, page 100, line 8, at end insert—
‘(1A) No information-sharing order may authorise data to be shared in any way that might result in the date being used for a purpose different from that for which its collection was originally authorised.’.
Amendment 51, in clause 152, page 100, line 9, at end insert—
“‘an appropriate person” means any public authority within the meaning of section 6 of the Human Rights Act 1998, and, for the purposes of that section, any use of data under an information sharing order shall count as exercising a function of a public nature and shall in no circumstances count as an act whose nature is private;’.
Amendment 52, in clause 152, page 100, leave out lines 24 and 25.
Amendment 53, in clause 152, page 100, line 27, leave out ‘it is satisfied’ and insert ‘the following conditions are met’.
Amendment 54, in clause 152, page 100, leave out lines 29 to 32 and insert—
‘(a) the order will not authorise data to be used in any way that implies any new government policy or any deviation from previously announced government policy, and “government policy” in this section means only that policy to which there is clear and unambiguous reference in the speeches or other remarks of Ministers during the passage of a bill or bills in Parliament,
(b) the order is proportionate to the policy objective it seeks to further, and’.
Amendment 356, in clause 152, page 100, line 30, leave out ‘secure a relevant policy objective’ and insert ‘serve the public interest’.
Amendment 55, in clause 152, page 100, line 33, leave out from ‘order’ to end of line 35 and insert
‘does not, other that with that person’s consent, interfere with or restrict any person’s right to or interest in privacy, whether that right or interest arises under any statute or at common law or in any other way.’.
Amendment 56, in clause 152, page 100, line 41, at end insert—
‘(5A) No information-sharing order shall be made unless the authority making the order identifies and publicly declares which existing government policy the order would further, the evidence for the existence of that policy in the speeches or remarks of Ministers during the passage of bills in Parliament and a statement of how the order will further that policy.’.
Amendment 57, in clause 152, page 101, line 8, at end insert
‘, except that such person must be a public authority for the purposes of section 6 of the Human Rights Act, and no power granted under this subsection shall be used to authorise any person further to share data;’.
Amendment 58, in clause 152, page 101, leave out lines 13 and 14.
Amendment 59, in clause 152, page 101, leave out lines 18 and 19.
Amendment 61, in clause 152, page 101, leave out line 22 and insert—
‘(h) modify any statutory instrument made under the Data Protection Act or any statutory instrument made under any other enactment, but may not modify any statute or any rule of common law.’.
Amendment 60, in clause 152, page 101, leave out line 22.
Amendment 147, in clause 152, page 103, line 13, at end insert ‘and
(c) undertake a privacy impact assessment.’.
Amendment 357, in clause 152, page 103, line 13, at end insert ‘and
(c) supply a full privacy impact assessment.’.
Amendment 148, in clause 152, page 103, line 14, after ‘order’, insert ‘and privacy impact statement’.
Amendment 149, in clause 152, page 103, line 18, at end insert
‘and comment on the compatibility of the proposals with all data protection requirements laid down in statute.’.
 
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